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Kentucky's Affordable Prepaid Tuition (KAPT) logo

Kentucky's Affordable Prepaid Tuition (KAPT)

Kentucky's Affordable Prepaid Tuition (KAPT) plan was closed to new enrollments in 2004. Participants could choose one of three KAPT packages: Value, Standard, or Premium. The first two are designed to lock in tuition at Kentucky public institutions, while the Premium plan is geared toward private college tuition rates. Kentucky also offers the Kentucky Education Savings Plan Trust, a direct-sold 529 savings plan.

Our Ratingx

Fee Scorex




  • Program typePrepaid contract
  • Enrollment periodMost recent enrollment ended December 13, 2004. The program is currently closed to new enrollment.
  • Inception2001
  • State agency
    Kentucky Higher Education Assistance Authority
  • Tax deduction
  • Program Manager
    Kentucky Higher Education Assistance Authority

Ratings & Rankings

Our overall rating for KY residents

This program is not open to you either because it has residency requirements or because it has stopped accepting new enrollments.

Our overall rating for non-residents

This program is not open to you either because it has residency requirements or because it has stopped accepting new enrollments.'s 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories.


State residency requirements:

The beneficiary must be a Kentucky resident at the time of program enrollment or have an intention to attend a Kentucky institution.

Who can be a participant/owner in the program?

U.S. citizens and resident aliens at least 18 years old, UGMA/UTMA custodians, and legal entities.

Significant time or age restrictions imposed by the program:

Two years must lapse from the first payment due date, and all scheduled payments must be received, before tuition benefits may be used.


Minimum contributions:


Contractual Features

Contract prices:

In the last (2004) enrollment period, prices ranged from as little as $3,175 for the one-year value plan to as much as $83,559 for the five-year premium plan. An extended payment plan is available.

Available tuition packages:

3 tuition plans: (1) value plan covers community and technical college, (2) standard plan covers highest-cost Kentucky public university, and (3) premium plan provides benefits based on the average cost of Kentucky's private institutions that grow in value at the same rate as tuition increases at the University of Kentucky.

Benefits for beneficiary attending private or out-of-state institution:

Beneficiary receives contract payout value, regardless of institution type.

Contract payment options:

Lump sum or monthly installments (with or without a down payment) over a variety of terms.

Are program benefits backed by the full faith and credit of the state?


Are program benefits collateralized or guaranteed in any other way?

Yes, 75% of the state abandoned property fund is available to cover any unfunded liability.

Fees & Expenses

Enrollment or application fee:

$50 for the first contract and $25 for subsequent contracts.

Taxes and other Benefits

  • Tax deduction for single filersNone
  • Tax deduction for joint filersNone


Kentucky doesn't offer tax deductions

Program match on contributions:


State tax deduction or credit for contributions:


State tax treatment of qualified distributions:

Qualified distributions from Kentucky and non-Kentucky 529 plans are exempt.

State tax treatment of rollovers:

Kentucky follows federal tax-free treatment.

Does the sponsoring state exclude the value of an account for state financial aid purposes?


Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?


Does the program have a formal agreement with a rewards program or outside scholarship program?

Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.

Upromise Helps Families Save for College

Upromise Helps Families Save for College

Statutory protection of an account from creditors:


Distributions & Terminations

To whom are distributions made payable:

Benefit distributions are made to either the higher-education institution or account owner. Refunds are made to the account owner.

Account Changes

Policy regarding participant/owner changes:

Contract ownership is not transferable except in limited circumstances.